Eagles Edge Capital Corporation offers their investors the opportunity to participate in quality first and second mortgages through two mortgage investment products:
- Syndicated Mortgages: Accredited investors can participate in Individual mortgages as part of a syndicate or a group. Interest is usually paid out monthly and is treated as interest income. Accredited Investor is defined in Section 1.1 of National Instrument 45-106 of the Income Tax Act.
- MIC Funds: Mortgage Investment Corporations (MICs) allow shareholders to invest in a diversified pool of quality 1st and 2nd mortgages. The interest income earned with a MIC is paid out quarterly as monthly dividends and, which investors can choose to take as cash or reinvest. The dividends are treated as interest income for tax purposes. Mortgage Investment Corporations or “MICs” are companies governed by the tax regulations of Section 130.1 of the Income Tax Act of Canada, created for “eligible investors”. This is defined in Section 5.2 (c) of National Instrument 45-106 of the Income Tax Act for investing in “pools” of mortgages with “pools” of investors. For those who don’t have the expertise or don’t want to commit the time and energy, the MIC allows investors to spread their risk over a number of mortgages without a lot of risk while enjoying better than average returns created by experienced mortgage professionals. Within these pools, you are able to invest both existing and new funds using cash or registered funds that may presently be in your RRSP, RRIF, LIRA or TFSA portfolios.
Similar to a mutual fund, a MIC provides a convenient way to diversify a portfolio of investments; in this case mortgages instead of stocks or bonds. Unlike most mutual funds, your money is secured by real estate which is not generally influenced by the volatility of the stock market and provides superior returns.
Regardless of your real estate or investment acumen, there is a mortgage option available to suit almost any level of expertise or preferred level of involvement.